UPI has become a go-to platform to make payments in India, but innovation shouldn’t stop, and a startup based in Gurugram has come up with a solution that does not even require a smartphone to make a payment. Proxgy, an Internet of Things (IoT) deeptech startup, has announced ThumbPay, a first-of-its-kind biometric payment concept that allows people to pay using just their thumb. 

With ThumbPay, the startup aims to redefine convenience in everyday transactions, while working in line with India’s 'Atmanirbhar Bharat' vision. “By linking Aadhaar with UPI on a low-cost hardware device, called ThumbPay, Proxgy aims to bring digital payments to every corner of India,” the company says.

After the successful closed loop pilot, Proxgy is now working on compliance approvals from UIDAI and NPCI. If cleared, Proxgy plans a phased rollout starting with leading banks, before expanding across fintechs nationwide. 

Thumb as the wallet

With ThumbPay, one places thumb on the device; once customers are identified and authenticated through Aadhaar AEPS, the money is instantly debited from their Aadhaar-linked bank account via UPI. 

This proposed link between two of India’s most powerful digital infrastructures — Aadhaar and UPI — could allow payments to be completed in seconds without QR codes, smartphones, or cash.

Founder and CEO Pulkit Ahuja sees ThumbPay as a natural evolution of India’s digital payment journey. “India did the hard work building Aadhaar and UPI over the last decade; ThumbPay is a creative synthesis of these platforms,” Ahuja says. By letting people transact with nothing but their inherent identity, ThumbPay embodies the spirit of ‘Digital India, by India’”.

The technology behind ThumbPay

ThumbPay combines Aadhaar Enabled Payment System (AEPS) and Unified Payments Interface (UPI) in a single flow. AEPS verifies identity and authentication with Aadhaar biometrics, while UPI handles instant bank-to-bank transfers. 

“Scalability is at the core of ThumbPay’s design. India’s fintech infrastructure – from UPI’s interoperable network to Aadhaar’s authentication layer – is built to handle massive volumes,” says Pulkit.

ThumbPay claims any merchant with a ThumbPay device can accept payments from any customer of any bank, just like UPI and AePS. It claims merchants also don’t need smartphones or even continuous power; the device is battery-powered and can operate in markets without reliable electricity.

What is ThumbPay device

ThumbPay device is an encryted ecosystem that connects Aadhaar with UPI without requiring an app or a smartphone. By making the thumb itself the wallet, the startup aims to enable all Indians, from metropolitan cities to rural towns, to access digital payments.

ThumbPay is priced under ₹2,000 (around $25), and the company claims all Indians with an Aadhaar-linked bank account are already enrolled to use ThumbPay. The device has already completed field trials at select merchants under control conditions. “Early pilots showed quick adoption, with customers enjoying frictionless checkout and merchants receiving instant confirmations with a wow factor,” the company claims.

Founded in 2020, Proxgy is an IoT startup, which has raised over $5 million. Its product portfolio includes SmartHat, AirShifter, Sleefe, Lockator, BirdBox, and UPI sound boxes like AudioCube and AudioPod.